July 30, 1915.

THE COLLIERY GUARDIAN

221

owner of the coal at the pit’s mouth may apply to the Board
of Trade for an extension of that period and the Board of
Trade may, if they are satisfied that there are special
reasons in the case in question for such an extension, extend
the period for such time as they think just under the
circumstances, and the period as so extended shall in such
a case be the period fixed under this provision.

(3)	This Act shall not apply to coal raised in Ireland.

(4)	This Act may be cited as the Price of Coal (Limitation)
Act, 1915.

(5)	This Act shall have effect during the continuance of
the present war and a period of six months thereafter.

RETAIL COAL PRICES.

We continue in this and following issues a digest of
the evidence given by witnesses heard before the Com-
mittee appointed by the Board of Trade to enquire into
the causes of the present rise in the retail price of coal
sold for domestic use.

The Lancashire Coal Trade.

Mr. W. H. Hewlett, general manager of the Wigan Coal
and Iron Company, was called on March 12. He said his
company differed from certain other collieries, inasmuch as
it supplied consumers direct through 125 sub-branches. He
was also chairman of the Lancashire and Cheshire Coal Sales
Association, which was a consultative body more than any-
thing else. About five-sixths of the Lancashire collieries
were associated. They were not very closely banded together;
it was only by mutual interests. When prices were falling,
and when there was a difficulty in vending the whole of the
coal, there was a good deal of backsliding. Anything which
was done in the nature of trying to keep up prices from
slumping unduly was very often rather interfered with by
defections from their own body, who simply sold under what
they considered to be a fair and reasonable price. In such a
market as they had had lately, their functions had been
rather of a restraining Character. The price in Lancashire
for 16 months was uniform, up to February 1, and then they
put on lOd. per ton. If it had not been for the Sales, Asso-
ciation the price probably would have been very much beyond
that. The association did not fix the pit head price, but the
price absolutely to the consumer. The price to the consumer
was fixed at Manchester, Liverpool, Blackburn, Bolton, and
Preston, very large towns in Lancashire, and the public could
buy at each of these different places. In regard to the pit
head price, it was a matter of bargain really. Of course,
with collieries who sold direct, these prices, to get at the pit
head price, would have to have the expenses of the yards,
railway rate, and wagon hire, and so forth, deducted from
them, and then they found the price which was realised by
the colliery proprietor. But where they sold to a merchant,
it was a matter of bargain as to what he would pay. He
wanted a certain margin for his services, and it was a
matter of bargain as to what price he would pay at the
pit head so as to allow him a sufficient margin for his work
and business.

Witness said the Mining Association of Great Britain did
not deal with commerce at all, and there was no society of
mine owners that embraced the whole country for commercial
purposes. Perhaps Mr. Maurice Deacon’s society in Derby-
shire approached their own society most nearly. That was
the only one he knew of, as they were not brought into con-
tact with any other body to any great extent. The only
thing which really affected them in Lancashire was the com-
petition that came in from other districts to the areas they
supplied. Of course, that did not apply in South Wales, or
in Durham or Cumberland, or in Scotland, but to some
extent it applied with regard to the Midlands, and there they
sometimes came in, and, if there was more coal than the
market could hold, they dumped it into their district. They
had no such thing as a colliery which contracted on a large
scale with merchants and factors. In Lancashire he could
say, without any qualms of doubt at all, that if they had
been dealing with middlemen, the price would have gone up
by more than lOd. per ton. In some parts of England fancy
prices 'might have been paid for small quantities outside con-
tracts, but where that had been so it had often been thought
it did not really very appreciably affect the average selling
price to a particular person. He knew of no large transac-
tions dealt with in that way.

From the Lancashire collieries of the Wigan Company the
output in 1914 was 1,910,000 tons, and of that they sold
518,000 tons as house coal; 1,564 men had joined the
Colours out of 11,332, or 13-8 per cent.—that is, of the
whole of the company’s employees, men, women, and
children. Of eligibles, 24 per cent, had joined. The diminu-
tion in output was rather higher than the diminution in
men—about 15 per cent.—and it was very largely due to
the bad working of the men. There was a great deal more
absenteeism now than had been the case. Unfortunately
it was following the usual practice, that when the men
earned high wages they did not attend as constantly to
their work.

Costs of working had gone up considerably, but witness
could not state the increase in terms of so much a ton.
The same standing charges and other expenses of that
nature had to be divided into a smaller number of tons,
because every day the output was falling off. He should say
a shilling would be nearer the mark than 2d. or 3d. There
had been so many things which had helped in regard to the
question of increased cost. There was the increase of labour
itself; because, although the colliers had not had a definite
advance recently, yet in all sorts of little ways there were
various requisitions which they had to fulfil day by day,
more surface charges and different odds and ends of that
nature appertaining to the pits. Then, of course, timber had
gone up very much indeed.

Mr. Hewlett said it had not been his experience that a
considerable number of collieries had declined to execute
the whole of their contracts on the plea that their output was
diminished. His own company determined to execute their
contracts to the full extent of their ability, and had reason-
ably and fairly carried that out. In the general conditions
of sale their strike and accident clause that exonerated them
from responsibility of delivery from accident or other
unavoidable cause made it obligatory on both sides that the
contract was only suspended—it was not cancelled; so that
they came to the conclusion that it was better to have done
with it. As a consequence they had very little free margin.
Witness said they sent no coal to London. They did at
one time, and the practice was kept until they found they
could not sell it; but they had kept on the business as
merchants.

A considerable change had taken place in the quality of
coal used in London, a change not altogether for the better.
He did not say that was universal, but he was speaking of
the popular coal used in London.

Witness said a great deal of coal was sold in Lancashire
to the consumer through co-operative societies; he should
say that half the cottage coal was sold through the
co-operative societies.

His firm did not supply these co-operative societies very
largely. They militated against them rather than otherwise
where the firm had their own yards, and they did not
naturally seek them as an outlet to any large extent. The
co-operative price was generally a little higher, perhaps a
halfpenny a hundredweight higher ;• the co-operative prices in
bags were from lOd. to Is. 3d. per ton more than those of
the ordinary dealer; but they gave back a dividend of 2s.
or 2s.- 6d. in the £, as the case might be, and that being
taken into account, it meant that the consumer paid a little
less in the aggregate for his coal.

Turning to the question of transit, witness said they
had a large number of wagons of their own—about 6,500.
The work those wagons had done had been lessened during
the winter to the extent of from 20 to 25 per cent. The
railways did what they could. The North-Western had been
rather worse in that respect than the Lancashire and
Yorkshire, to whom they paid, he supposed, about £3,000
a month, as against £10,000 to the former. But the latter
had not the through traffic, and had not been called upon
quite to the same extent for the movement of troops and
munitions of war. The falling off in rapidity and
efficiency of their wagon service might be taken as from a
day to a day and a half a week. For instance, if a wagon
performed its journey usually within five days, it would take
six days or perhaps a little more to complete its journey
now. He was speaking, naturally, of the whole average of
the wagons, but there were instances where wagons got
lost in the oblivion of the past almost. They had stock at
the pits, and could not get it to the consumers, because if
they filled up from stock one day they had to put it down
the next in consequence of there being a scarcity of wagons.
Then again it increased the cost to the colliery as distributors
or to the merchants, in this sense, that if wagons did not
turn up as they were expected, horses and carts had to wait
about with nothing to do, and sometimes in order to supply
the consumer they had to make two or three journeys to keep
them going.

Mr. Hewlett thought that as the retail price in Lancashire
had only been advanced 10d., it could scarcely be considered
to be high as compared with the previous rates and with
other districts, and it was likely the advance was no more
profitable to the colliery than the preceding prices with the
previous costs, full out-turn, regularity of transit, and there-
fore the lower working costs at distributing centres. Transit
trouble bringing irregularity of supply at once seriously
enhanced cost of distribution. The law of supply and
.demand was, of course, inexorable, but unless there was
some alteration in circumstances the demand would fall off.
Although prices much remain relatively high, yet it did seem
that within a very short period there would be no
continuance of extreme prices, especially if the colliers could
be induced to work with greater regularity. That, he laid
great emphasis upon. There had been pressure for industrial
coal in Lancashire, and, of course, higher prices had been
paid by people for any little extra quantity they had
required, but he should not say there had been anything of
a very extreme nature. He had no doubt the gas companies
were looking forward with some degree of apprehension as
to the extra price that they would have to pay for additional
quantities for the next year’s contracts. There was scarcely
any coal but what was suitable for two things. The higher
class of coal was suitable for either house purposes or gas
purposes; that was the bituminous gassy coal. Some of
that was, perhaps, sent in little larger quantities to the
gas companies in summer than in winter. Then there was
a coal which could either be utilised for house purposes, of
what they might call a medium quality, or for the supply
of locomotives, the supply of bunker coal to steamers, and
so forth, so that it eked itself out in that way. Factories
were fed mostly with slack, and that was interchangeable
between industries and coke-making, and so forth. In
saying that, he did not expect a state of things under which
the supply would exceed the demand. Witness added that
the gas coal people last year delayed their purchases till
the last moment, and when they made their purchases they
made them rather on the short side, thinking they would
get their extra quantities at a lower rate. The war broke
out, and difficulties had occurred since; and consequently
they had had to pay, for any little extra they wanted, very
largely increased prices. Now this year it might be they
would want to come into the market so much earlier because
they might fear that delay would make them pay more.
But he did not see how a prudent man could enter into a
contract at that moment until he knew more about what
was going to happen with regard to the attitude of the
men. So that contracts would be postponed, from the
colliery owner’s point of view, however anxious the person
who wanted to buy might be.

Referring to the ascertained prices under the Conciliation
Board agreement, witness said it was astonishing what very
slight advances in proportion there had been upon these
figures, as to the actual cost realised, having taken all the
contracts and everything into account. In the month of
December as against November there was only a penny per
ton difference in the realised value.

Witness said the class of coal which he had referred to
was bought on sliding scale. In all their contracts of late
years—since the Sales Association was formed—they in
Lancashire entered into contracts with the merchants for
the supply of house coal based upon certain figures which
were a matter of bargain at the time; but if there was a
change of price during the period when that contract ran,
for every lOd. they put on they did not charge the merchant
more than 8d. If it was the other way about, for every
lOd. taken off he only got 8d. taken off his price. But
almost all their trade for house coal was direct. Taking gas
coal, they supplied a large quantity, about 300,000 tons a
year. All that is done direct as well. Witness explained
how this system had originated. Year in, year out, they
used to have fixed contracts with merchants. When that
system applied, of course, when the market went up it was
all right for the merchants, but when the market came down,
during the period when the contract was running, it was
difficult to make people, especially small people, carry out
their contracts; so that they considered it was very much
fairer that we should let them participate—that their
interests and those of the collieries should be identical
practically. With merchants they did make contracts for
house coal, but it was only on the question of quantity.

There was a fixed contract price. The merchant said the
“ price of coal is so much to the consumer, and I must have
it at so much to pay my expenses.” The colliery owner
said, “ I think that leaves me too little a price, and I want
more.” The higgle of the market determined it. But if
in the course of the contract, after it was settled, the market
went up or down, then the sliding scale came into operation.
Some of the main seams of household coal ran through a
number of collieries, and the cost of production and raising
that coal, in some of the older-fashioned collieries, was much
higher than it was in the modern collieries. But they had
coal dumped into Lancashire from Yorkshire and all parts,
and had to take the price that could be obtained for that
quality, and if a pit did not pay, it did not pay. The company
have about 30 pits, and witness supposed 8 or 10 of them
did not pay at all. Some had to be closed down lately,
because the loss entailed was too serious to be borne. In
some places when a colliery had passed its zenith, when
it got an enormous way out, and only a small quantity came
to the district, and they had to keep roadways open for
a comparatively small output, it was so expensive that the
time came when there must be no reasonable hope of an
improvement; then they closed it if they could do so. There
were certain rents, from the landlord, and other obligations
which had to be borne in mind. They could not fix the
price, unfortunately, on the average pit; they had to fix it
from the end where the quantities were put into a particular
market and in competition from other districts, and cn tie
price which could be obtained for that commodity; and if
a sufficient price could not be obtained to enable tl at
particular pit to pay, it either had to go on suffering the
loss as far as it could with the hope of improvement, or
close

Witness said the best class of coal from Lancashire at
one time came to London. They had other coal appertaining
more to the Warwickshire description, but not quite so lad.
The people in Manchester and Liverpool would not burn
rather bore on the question of house coal, and that was the
very largely increased use of gas stoves in Lancashire. That
had affected the question of house coal consumption very
materially.

Witness mentioned that under the contract forms which
they had in other cases the cancelling of the quantity was
one of the conditions; and he was not sure that was not
the proper way to do it. In fact, they had under considera-
tion at that moment whether they would change their form
as to conditions of purchase and sale to that extent.

In connection with wagons, it was customary for the
colliery proprietor to execute contracts in their own wagons;
it was either in their own wagons or the dealers’ wagons.
The railway company did not find wagons. It was a
matter of bargain at the time the contract was entered into.
In almost nine out of ten cases, or 95 out of 100, the collieries
supplied their own wagons.

Witness stated that at their Nottinghamshire pits they
did not raise any household coal; it was all industrial.

Referring to the delays in transit, Mr. Hewlett said he
thought the average wagon hire for the distances they ran
would be about 6d., so that the extra cost would be about a
third of 6d. Of course, if we had to buy wagons now they
were very costly.

Witness did not think the merchants were in a position to
put on an abnormal price in the face of so many wharves,
where coal could be got direct at these prices. He knew of
no. instance where merchants were getting so much higher
prices than the list prices. It was witness’s opinion that
if the same opportunities of transit had been current as
usual the coal in London would never have arrived at
anything like the price it had. One ton less than the
market could absorb always affected the price in an upward
direction. It was a question of that little fine point between
the actual supply and the actual demand; that naturally
everybody was wanting that extra ton or everyone was
going short in the other case. There was a good deal of
coal came in on the Manchester side from Yorkshire and
Derbyshire. Liverpool would depend on Lancashire very
largely. Sometimes, especially in the Wirral peninsula, it
drew from North Staffordshire. Prices went by shillings in
Liverpool, as against t^npence in Manchester.

Witness said the 15 per cent, diminution in output was
only in the Wigan area. In Notts they had been increasing.
At Manton they had laid out £100.000 to increase their
outnut. They were now raising 10.000 tons per week. It
ought to have been 15.000 tons, but quite 30 per cent, of
the men had gone or intended to join the Colours.

(To be continued.)

A particularly mean prosecution was that which resulted,
at Gateshead last week, in the conviction of Wm. Yielder,
of Emmaville. Ryton, of having, on February 18, for the
purpose of continuing an old age pension of Is. per week,
made a false representation as to the amount of his income.
The old man. it was alleged, had informed the pension
officer that he received 4s. per week compensation from the
Stella Coal Company, whereas, as a matter of fact, he got
5s. 9d. and house and coals. He had been in the company’s
employment for 60 years, and was given an exemplary
character. He was fined £2 0s. 6d., and will, of course,
forfeit his pension. The case is on a par with those
mentioned by Messrs. Wing and Galbraith in the House of
Commons recently, in which residents in the aged miners’
homes which have been erected in the countv of Durham
bv the joint efforts of the miners and coal owners, are
denrived of their pensions, in some instances, because the
estimated, value of their house and coals raises their
income ” above the pensionable level. It is amazing that
the State should so penalise honest old men who have given
their best vears to the service of the community in so
arduous and hazardous an occupation as coal-getting.

Partnerships Dissolved.—The London Gazette announces
U»e dissolution of the following partnerships :—Walter James
Rutter and Lysaght John Rutter, surveyors. 10. Norfolk-
street, Strand, London; Emma Jane Whiteley and John
Rilev. blacksmiths. Ogden-lane. Rastrick: Georgiana Eliza-
beth Toplis. Albert Edward Sabine. Beatrice Jane Allen, and
Walter Harold Sabine, machinists. Swadlincote, Derbvshire,
so far as concerns Georgiana Elizabeth Toplis and Walter
Harold Sabine: Robert Redman and Herbert Alfred
Bessemer, electrical engineers. 32, Torwood-street. Torquay:
J. Linlev and W. H. Bucklev, engineers, brass finishers,
and smiths, at Farrow-street. Shaw, near Oldham, Lancaster,
under the style of Linley and Buckley.